| 2020 R'000 | 2019 Restated R'000 |
||||||
|---|---|---|---|---|---|---|---|
| 5. | Discontinued operations | ||||||
| Results of the discontinued operation included in the Group's results for the year ended 30 June are detailed as follows: | |||||||
| Revenue | 1 057 525 | 1 094 022 | |||||
| Cost of revenue | (840 519) | (630 877) | |||||
| Gross profit | 217 006 | 463 145 | |||||
| Operating expenses | (716 538) | (396 414) | |||||
| Other income | 1 063 | 1 813 | |||||
| Trading (loss) profit | (498 469) | 68 544 | |||||
| Share-based payment expense | (1 324) | (1 269) | |||||
| Impairment of property, plant and equipment and right-of-use assets | (128 300) | – | |||||
| Operating (loss) profit | (628 093) | 67 275 | |||||
| Net finance charges | (210 151) | (130 348) | |||||
| Finance income | 5 151 | 7 320 | |||||
| Finance charges | (215 302) | (137 668) | |||||
| Operating loss before taxation | (838 244) | (63 073) | |||||
| Taxation | 205 977 | 14 587 | |||||
| Loss for the year from discontinued operations | (632 267) | (48 486) | |||||
| Basic earnings per share (cents) – discontinued operations | (186.4) | (14.4) | |||||
| Diluted basic earnings per share (cents) – discontinued operations | (186.1) | (14.3) | |||||
| Headline earnings per share (cents) – discontinued operations | (159.2) | (14.4) | |||||
| Diluted headline earnings per share (cents) – discontinued operations | (159.0) | (14.3) | |||||
| Effect of the discontinued operation on the Group'sconsolidated statement of financial position | |||||||
| Assets of disposal group held for sale | 1 806 855 | ||||||
| Vehicle rental fleet | 1 561 338 | ||||||
| Inventories | 1 600 | ||||||
| Trade and other receivables | 168 694 | ||||||
| Current tax asset | 58 335 | ||||||
| Cash and cash equivalents | 16 888 | ||||||
| Liabilities of disposal group held for sale | 1 639 219 | ||||||
| Post retirement medical aid obligations | 1 123 | ||||||
| Lease liabilities | 78 096 | ||||||
| Trade and other payables | 195 325 | ||||||
| Provisions for discontinuation | 255 233 | ||||||
| Interest bearing borrowings | 345 993 | ||||||
| Cash and cash equivalents (overdrafts) | 763 449 | ||||||
| Cash flows from discontinued operations | |||||||
| Net operating cash flows from discontinued operations | 232 661 | 293 106 | |||||
| Net investing cash flows from discontinued operations | (653 016) | (276 453) | |||||
| Net financing cash flows from discontinued operations | 290 223 | – | |||||
| Net (decrease) increase in cash and cash equivalents | (130 132) | 16 653 | |||||
Bidvest Car Rental (BCR) is a motor vehicle rental business operating in South Africa, Botswana and Namibia. As a result of declining international and domestic travel brought on by the COVID-19 pandemic and a low prospect of a short-to mid-term recovery, management took the decision to exit the business. The BCR business is an identifiable component of the Group's business, the operations and cash flows of which can be clearly distinguished from the rest of the Group. BCR represents a separate major line of business in the geographical area of Southern Africa. The relevant requirements of IFRS 5 were met for this operation to be classified as a disposal group held for sale and a discontinued operation as at 30 June 2020. BCR is a separate and major business component of the Automotive segment. A buyer was engaged during June 2020 and the indicative purchase price remains largely unchanged. COVID-19 restrictions added additional challenges to the transaction execution. Success in obtaining financing is considered to be highly probable and some suspensive conditions exist. BCR was not previously classified as a disposal group held for sale and as a discontinued operation. The comparative consolidated income statement and consolidated statement of cash flows and financial reporting were restated to show the discontinued operation separately from continuing operations. |